Pat veal dry and season with salt and pepper. Heat 1 teaspoon oil in a 4- to 5-quart heavy pot over moderate heat until hot but not smoking, then brown veal in batches. Transfer as browned to a bowl.

Add 1 teaspoon oil and onion to pot and cook over moderately low heat, stirring frequently, until softened. Add garlic and cook, stirring, until fragrant, about 1 minute. Stir in flour and paprika and cook, stirring, 1 minute. Whisk in soaked mushrooms with liquid, scraping up any brown bits, and tomato paste, then bring to a simmer, whisking. Add veal with any juices.

Cover and simmer over low heat until veal is tender, about 1 1/4 hours.

While meat is simmering, lay peppers on their sides on racks of gas burners and turn flames on high. Roast peppers, turning with tongs, until skins are blistered and blackened in spots, 4 to 5 minutes. (Or cut sides from peppers, discarding seeds and stems, and broil, skin sides up, on rack of a broiler pan about 2 inches from heat.)

Transfer peppers to a bowl, cover, and cool. Peel and seed peppers and cut into 1-inch pieces.

Heat remaining teaspoon oil in a
12-inch nonstick skillet over moderately high heat until hot but not smoking, then sauté mushrooms with salt and pepper to taste, stirring occasionally, until browned and tender, 6 to 8 minutes. Stir into stew with bell peppers and salt and pepper to taste and gently simmer goulash 10 minutes to blend flavors.

Serve over noodles.

Cooks' note:
Goulash, like all stews, will taste even better if made 1 day ahead. Cool uncovered, then chill, covered. Reheat gently before serving.

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Recent Review

I made a lazy, poor girl version of this goulash dish. Instead of veal, I used ground turkey. I did not use any tomato sauce, stewed nor whole as I have never heard of that in a goulash. I used a lot more paprika. I did not add any peppers or mushrooms. I did, however, add onions, potatoes, salt, pepper,chopped garlic. Once I browed the meat, I added a little flour and water. I brought that to a slight boil, then added my other ingredients and cooked it on low heat twenty minutes. I served this with three cups of rice.
Remember I said lazy, poor girl version (when you don't have a lot of time nor the veal).
My dad taught me this way when he came home from the Army in Germany. It goes over well, though it is not the real deal.